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A consulting firm estimates the following quarterly sales forecasting model: Qt=a+bt+cD The equation is estimated using quarterly data from 2010/2020///(t=1,.,43). The varlable D is a
A consulting firm estimates the following quarterly sales forecasting model: Qt=a+bt+cD The equation is estimated using quarterly data from 2010/2020///(t=1,.,43). The varlable D is a dummy varlable for the second quarter where: D=1 in the second quarter, and 0 otherwise. The results of the estimation are: \begin{tabular}{|c|l|l|l|l|c|} \hline DEPENDENT VARIABLE : & QT & R-SQUARE & F-RATIO & \multicolumn{2}{|l|}{ P-VALUE ON F } \\ \hline OBSERVATIONS: & 43 & 0.8644 & 127.5 & 0.0001 \\ \hline VARIABLE & & PARAMETERESTIMATE & STANDARDERROR & T-RATIO & P-VALUE \\ \hline INTERCEPT & & 22.50 & 9.32 & 2.41 & 0.0201 \\ \hline T & & 1.86 & 0.55 & 3.38 & 0.0016 \\ \hline D & & 2.00 & 0.71 & 2.82 & 0.0075 \\ \hline \end{tabular} Give the above, at the 1 percent level of significance, is there a statistically significant trend in sales? Multiple Choice No, since 1.860.55 Yes, since 3.38>2.704
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